Stock Analysis | Sempra Outlook - A Cautious Technical Picture Amid Mixed Fundamentals

Market Snapshot

Takeaway: Sempra (SRE) shows a mixed bag of signals, with weak technicals and a cautiously optimistic fundamental outlook. The current price trend is down by -2.11%.

News Highlights

• May 28, 2025 - Stryker leads in West Michigan: Stryker, a health care giant, reported a 10.2% revenue increase in fiscal year 2024, showing strong performance in the region.
• May 16, 2025 - Independent Bank slowdown: Earnings at Independent Bank are expected to dip by 5% to $3.00 per share in 2025 due to margin compression and slower loan growth.
• May 5, 2025 - Kite Realty Group Trust: The article highlights live stock price updates for Kite Realty Group Trust, indicating growing interest in real estate investments.

Analyst Views & Fundamentals

The average rating score for SRE is a 3.00, while the weighted rating score is 1.65. The market consensus is split, with recent analyst activity showing a neutral stance. This contrasts with the current price trend, which is down -2.11%, suggesting a potential disconnect between analyst expectations and short-term price action.

Key Fundamental Factors

• Total Operating Revenue (YoY Growth Rate): 2.27%. Internal diagnostic score: 3.34.
• Inventory Turnover Ratio: 1.73. Internal diagnostic score: 1.49.
• Profit-MV: 13.00%. Internal diagnostic score: 3.40.
• Basic Earnings Per Share (YoY Growth Rate): -12.13%. Internal diagnostic score: 3.81.
• Cash-UP: -5.20%. Internal diagnostic score: 3.18.
• Interest Coverage Ratio (EBIT / Interest Expense): 3.24%. Internal diagnostic score: 3.76.

Money-Flow Trends

Big-money investors are showing a negative trend, with an overall inflow ratio of 48.34%. The large and extra-large money flows are also negative. Retail investors show a mixed picture, with small investors trending negatively and medium ones positively. This suggests a cautious stance from institutional money and less confidence among retail investors.

Key Technical Signals

The technical outlook is weak, with an overall score of 4.64 (internal diagnostic score). Bearish indicators dominate, with 3 out of 7 signals leaning bearish. Among the most recent chart patterns:

• July 31, 2025: WR Overbought, RSI Overbought, Bullish Engulfing, and Marubozu White signals were noted. Bullish Engulfing received an internal score of 7.70.
• July 30, 2025: WR Overbought and RSI Overbought signals were also seen, with WR Overbought scoring 3.89 and RSI Overbought scoring 3.68.

The momentum remains unclear, with conflicting signals making it hard to predict the trend direction.

Conclusion

Investors should approach SRE with caution. The technical signals suggest a weak trend, and while the fundamentals remain mixed, they do not strongly support aggressive investment. Given the recent bearish indicators, consider waiting for a pull-back or clearer momentum before entering new positions.